85%
Highly Likely
The scale of the reported Xbox layoffs is seemingly, somehow, worse than anyone might've feared. While we've been hearing reports and rumours all day of Compulsion Games and Arkane Lyon at risk, now, a new report from Bloomberg points to other studios like Double-Fine and Ninja Theory as two others also trying to negotiate with Xbox, to find a path forward that doesn't involve the studio getting shut down.
The report claims that both Double-Fine and Compulsion are "in active negotiations to spin-off" from Xbox, similarly to how Toys For Bob was able to do so rather than get shuttered by Activision. Though we had not yet seen reports of Double-Fine, makers of several iconic titles, as in negotiations or under threat of shuttering, Bloomberg's report reveals the immense scale of these layoffs.
Compulsion, Double-Fine, and Ninja Theory are all named as studios under threat of closure that are trying to negotiate a buyout from Xbox, but the report adds that "several other studios across the portfolio are at risk of being shuttered."
It's the continuation of the "reset" that Xbox chief executive officer Asha Sharma spoke of when Bloomberg first reported the threat of these upcoming layoffs last week. Part of that has also been a shake-up in leadership, with the Xbox Games Studio head and chief of staff both leaving after years Xbox.
If the studios under Xbox that are at risk of being shut down aren't able to negotiate terms for a buyout, then these layoffs could be some of the worst we've seen from Xbox yet, which is an incredibly high bar that Xbox continues to surpass, to everyone's great disappointment and chagrin.
About the author: David has been writing about videogames, technology, and culture since 2020, with a focus on reporting daily news across multiple publications, including GameDaily.Biz, GameSkinny, and PlayStation Universe before joining Wccftech in 2025. David started contributing as Canada/US reporter for Wccftech's gaming section in 2025. Besides being up-to-date on the industry's movements, he loves interviewing developers, reviewing games, and writing intricate essays about the symbolism and layered meanings to be found in rich narratives as he's done for publications like GamesIndustry.Biz, LostInCult, and others. Outside of games he loves movies, music, theatre, his hometown, and his family, though not necessarily in that order.
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